Rocket - DKS Credit Put Spread 03-08-21
Dicks Sporting Goods - Selling a Credit Put Spread
DKS with earnings tomorrow before the bell and options are pricing in a decent move, with an $6.67 move priced into an $76.44 stock. DKS is already up 6.6% in today's trading action.
We are going bullish this equity and will look to absorb some premium below the market. They've had quite a run so far this year and deservedly so with how they performed over the last 12 months. I'm not sure I see this stock running dramatically higher, but the odds that it crashes lower as we all look to get out more often is not a high probability.
We are going bullish this equity and will look to absorb some premium below the market. They've had quite a run so far this year and deservedly so with how they performed over the last 12 months. I'm not sure I see this stock running dramatically higher, but the odds that it crashes lower as we all look to get out more often is not a high probability.
Both legs expire Friday March 12th
Selling the DKS $72 put
Buying the DKS $71 put
This should result in a credit of about $0.30. Don't get less than $0.25 credit for this trade. Our max profit is $30 and our max loss is $70 per pair.
Buying the DKS $71 put
This should result in a credit of about $0.30. Don't get less than $0.25 credit for this trade. Our max profit is $30 and our max loss is $70 per pair.
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